Though revenues are up in the third quarter of 2019, Manitou is seeing something of a slowdown.
Michel Denis, the company’s President and CEO, said, “Sales growth in the third quarter was plus 4% compared to the third quarter of 2018, and plus 18% for the first nine months of the year compared to the first nine months of 2018, confirming the start of the slowdown already announced.”
The manufacturer has seen its order intake on equipment drop to €244 million in the third quarter of 2019, from €346m in the same period last year, as a result of declining markets – particularly in the US and Northern Europe – as well as the shortening of delivery times.
At the end of the quarter, Manitou’s equipment order book stood at €526 million, compared to the €825 million recorded in the third quarter of 2018.
The company’s Compact Equipment Products (CEP) division performed particularly badly, with a 7% drop in sales compared to the third quarter of last year. However, its sales for the first nine months of the year have increased by 10% compared to the same period in 2018.
Floods affected the company’s Madison (SD) plant, leading to a production shutdown for six weeks. It is due to return to normal production shortly.
Meanwhile, the Services and Solutions (S&S) division recorded a 9% increase in third-quarter sales, and the Material Handling and Access (MHA) division saw a 6% growth in sales. According to Manitou, the MHA division is continuing to adjust its production capacity to a decline in demand recorded in its markets.
Denis said, “To date, this evolution does not affect our expectation of revenue growth of around plus 10% for the full 2019 financial year compared to 2018.
“Following the above-mentioned items and a six-week shutdown of our Madison plant due to floods, we expect a lower increase in current operating income in 2019, by 10 to 30 basis points.”